Hi Mish wondering if you might consider commercial mortgage backed securities and their covenants. While of course there are fewer commercial properties in comparison to residential homes, they are of larger values and also embedded in the shadow banking system. In the case that they are also rehypothecated you can imagine the holder being called on to raise cash in both directions at once. I know you are USA specific, but in the UK there are government schemes that although purporting to help local businesses, are tantamount to supporting the rents in major cities.

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cmbs is not generic? what kind of cmbs? office buildings? with covid and people working from home this is not a good sector. malls? another one to avoid. the intenet is killing the anchor tenants. brick and morar department stores which draw people to the malls are all failing. those are two huge sectors of the commercial market? mybe you are thinking multi-family ? that coul be better probelm with cmbs is they throw everything in their and you need to drill down to your risk. this isn't something amateurs should wade into. a fund would be better. many insurance companies won't buy cmbs tranches and will only buy individual properites so they can control the documents and the servicing which is a huge deal in this space. frankly i can't understand why anyone would buy a cmbs security. in my mind the insurance companies who buy indivdaul properites and control the underwriting and the servicing have it right.